U.S. Department of Commerce Finds Dumping and Countervailable Subsidization of Imports of Stainless-Steel Kegs from China and Germany

October 18, 2019

Today, the U.S. Department of Commerce announced affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of refillable stainless-steel kegs from China and Germany, finding that exporters from these countries have sold stainless-steel kegs at less than fair value in the United States at rates ranging from 0 to 77.13 percent and 7.47 percent, respectively. In addition, Commerce determined that exporters from China received countervailable subsidies at rates ranging from 16.21 to 145.23 percent.

In 2018, imports of stainless-steel kegs from China and Germany were valued at an estimated $16.4 million and $2.9 million, respectively.

The petitioner is the American Keg Company, LLC (Pottstown, PA).

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 184 new antidumping and countervailing duty investigations – a 235 percent increase from the comparable period in the previous administration.

Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 498 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on or about December 2, 2019. If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.

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